Thursday, August 25, 2011

India is the largest consumer of gold in the world and accounts for around 20 % of the world demand.

Gold had always been perceived as the best friend during the crisis and meteoric rise in gold prices during the past several years has portrayed gold as one of the most sought-after investment options.

But majority of gold in India is in the form of jewelry which is often unaccounted and undeclared.

To bring this idle gold into the mainstream gold deposit scheme was conceived.

Modus-Operendi of the Scheme

Designated banks accept gold from investors to melt and turn into pure gold bars, and interest bearing certificates are issued to investors in-lieu of the gold deposited. These certificates can be redeemed in gold or cash on the maturity date.